Toys“R”Us Japan Deploys Forter’s AI Platform, Achieving Zero Fraud and Slashing Cart Abandonment Rates
Toys“R”Us Japan has successfully integrated AI-driven fraud prevention technology from New York-based Forter, a move that has effectively eradicated fraudulent transactions while recovering lost sales tied to checkout friction. Following a one-month operational period, the retailer reported zero instances of e-commerce fraud alongside a highly streamlined customer payment experience.
The E-Commerce Dilemma: Security vs. Sales
The adoption highlights a critical pain point in the modern retail sector. In response to rising credit card fraud, Toys“R”Us Japan implemented 3D Secure 2.0 (3DS) in August 2024. However, the retailer quickly encountered a classic e-commerce dilemma: heightened security measures introduced severe friction. The additional authentication steps required by 3DS led to widespread "cart abandonment," significantly impacting top-line revenue. Balancing rigorous fraud prevention—particularly for high-demand, high-target items like video game consoles—with a seamless buying experience became an urgent operational priority.
The Solution and Catalyst for Adoption
To resolve this bottleneck, the company deployed Forter Fraud Management and Forter Payment Optimization across its online storefronts. According to Toys“R”Us Japan, the decision to partner with Forter was driven by three core factors:
- Contractual KPI Guarantees: Forter provided clear return-on-investment metrics, guaranteeing specific block rates, 3DS utilization rates, and chargeback rates within the contract.
- Smart Authentication: Rather than applying a blanket 3DS requirement to all transactions, Forter’s AI assesses risk in real-time, offering frictionless, no-authentication checkouts to low-risk, legitimate customers.
- Full Automation: The AI provides instant approvals or denials, drastically reducing the manual labor required for visual confirmations and rule adjustments, thereby improving operational efficiency.
Early Yields: One Month In
Since initiating full-scale operations in January 2026, the financial and operational metrics have been stark. Toys“R”Us Japan confirmed the total suppression of fraudulent transactions. Furthermore, the company reported a drastic reduction in 3DS authentication prompts—targeting a utilization rate of under 5%—which has minimized checkout friction and tangibly reduced cart abandonment. Crucially, the AI's precision has eliminated "false positives," ensuring legitimate buyers are not mistakenly blocked. This has yielded a secondary benefit of significantly reduced customer support inquiries.
Executive Perspectives
"The introduction of Forter has put an end to our long-standing challenge of balancing enhanced security with sales growth," stated Michihito Nakajima, Head of e-Commerce and Customer Support at Toys“R”Us Japan. "In just one month of operation, we have simultaneously achieved fraud suppression and increased conversion rates, confirming the high accuracy of Forter's AI. Moving forward, we plan to leverage this platform to tackle account takeovers and unauthorized resellers."
Yosuke Noda, Forter’s Country Manager for Japan, noted that the platform's high-precision decision-making eliminates false positives for genuine customers, inherently driving up customer satisfaction and protecting the retailer's bottom line.
Corporate Background
Forter is a leading digital commerce trust platform, utilizing advanced AI to process over $2 trillion in transactions for a global client roster exceeding 400,000 businesses, including Adobe, eBay, and Nordstrom. Toys“R”Us Japan, a subsidiary of Toys“R”Us Asia, operates 152 physical locations nationwide alongside its robust online marketplace.
Norbert Gehrke
